Qualampur: An analyst stated that Ringit opened slightly more than the US dollar, as the US Federal Reserve (Fed) does not seem to be keen to reduce rates in a near period.
At 8 am, the ringitte strengthened by 4.4230/4375 against the greenback compared to the closure of 4.4320/4385 on Thursday.
Bank Malaysia Malaysia BHD Chief Economist Dr. Mohammad Afzanim Abdul Rashid said that the US dollar now appears in a melodious place, and this landscape will create a challenge for the emerging market currencies including the ringt.
“In this way, the ringitte can flirt near its immediate resistance level of RM4.45,” he told Bernma.
Mohammad Afzanim said that a series of fed speakers suggested that the interest rate cut would need to be made careful, which is given on tariffs, taxes and immigration to the current American policy.
“Some of them also see that the current Fed Fund rate is near its neutral rate – a rate neither contraction nor expansion,” he said.
In addition, he said that the US dollar was seen reaching a high level of 108.076 points before settling at 107.696.
Additionally, American Treasury Secretary Scott Besant also reiterated the government’s stand on a strong dollar policy to persist, Mohammad Afzanizam said.
Meanwhile, the ringitte was mixed against other major currencies.
It was more than 5.5090/5171 over 5.5009/5189 from around 5.5090/5171. However, it slipped from 4.5933/6083 to 4.5920/5987 from yesterday and fell against Japanese Yen to 2.9036/9080 before 2.9245/9345.
Local notes also traded mostly high vs ASEAN currencies.
It rushed to the Thai Baht from 13.0912/1462 from 13.1175/1433 yesterday, with Indonesian Rupiah 270.6/271.6 to 271.2/271.7 from around Thursday from close to Thursday, and near the Philippines surrendered at 7.60/7.60/near the Philippines and 7.60/ 271.6 7.63 to 7.62/7.63 Earlier.
However, the local note did a slightly less trading against the Singapore dollar, below 3.2742/2793 to 3.2758/2868.
